One year after identifying multiple control deficiencies UniFirst Corporation (UNF), a workplace uniform and protective gear provider, says the issues remain unfixed. The deficiencies relate to UniFirst’s new customer relationship management (CRM) system which is currently being deployed and sow doubt about, among other items, the company’s reported sales:

“...affect revenue and receivables as well as a group of legacy applications which affect revenue and receivables, supply inventory and merchandise in service.”

After engaging in what it calls “substantive procedures”, UniFirst’s management suggests the financials reported in its latest annual report— which was not filed on time—are accurate.

Of greater concern though is that the deficiencies are the result of the company's new CRM. Years ago UniFirst tried to implement a new CRM but terminated the project in 2018 after failing to successfully implement it across the business.

Successfully implementing a CRM is likely to be even more complex as it’s part of a major technology overhaul. UniFirst is also deploying an enterprise resource planning (ERP) system to “integrate and complement” the capabilities of its new CRM.

ERP implementations are complex, plagued by delays and cost overruns, and can grind entire business operations to a halt if not successful.

The ERP implementation will run through 2027.